S&P upgrades Russia's credit rating from "B+" to "BB-"

Standard&Poor's, an international rating agency, upgraded today a long-term sovereign credit rating of Russia from "B+" to "BB-". At the same time, according to the press service of the international agency, Standard&Poor's confirmed a "B" short-term sovereign credit rating of Russia. The agency's forecast for sovereign ratings is "stable".

"The upgraded rating reflects the improvement of governance system in Russia as well as the reinforced debt policy, which is presented as taking important legislative steps and the continuing reinforcement of the budget discipline", Helena Hessel, a sovereign rating analyst, said. "In particular, the adoption of a politically crucial bill on the legalization of selling agricultural lands points to the close coordination of policies pursued by legislative and executive branches of power. The changes in the management of the Russian Central Bank expanded the perspectives of implementing important banking reforms and financial liberalization, while the recent changes in Gazprom, a company that has substantial political influence, also point to progress in streamlining the Russian energy sector", the Standard&Poor's analyst said.

She was quoted as saying the "stable" forecast reflects expectations of continuing reasonable fiscal policy and debt management policy and further progress in the reform implementation. "Speeding up reforms, especially in the banking sector, might improve Russia's credit rating", the Standard&Poor's analyst said.